8 Tips Game Developers Can Teach Startups About Crowdfunding

You are about to learn the power of game developers and the principles they live by which can cause any startup to thrive if followed correctly. Never have I met two guys who are more passionate about what they do than Trent Kusters and Blake Mizzi who are two of four directors from game development collective League Of Geeks (LoG for short). To date, LoG have spent about $800k AUD on creating their game Armello and have crowdfunded nearly half of that through Kickstarter.

In Trent and Blake’s mind LoG is a collective of artists trying to create experiences, build amazing games and wow their users, but what I don’t think they realise is that their business plan, techniques and execution is probably better than most Fortune 500 companies. They have taken gaming concepts and applied them to their business with overwhelming success. When you couple that with a supportive government in Victoria (Australia) who understand how important the gaming industry is to the local economy, you have a Master Chef recipe for success. (GET EXCITED!!!)

***The Secret Sauce of Armello***

League Of Geeks is a game development collective that is structured so that they can work and collaborate with developers all around the world. They have created a world first model that works by gamifying the development of their game.

One of the directors had worked for a large game studio before joining League Of Geeks, and after he had left a company that he helped create into a world-class brand, he was left with nothing. This studio had tried their own version of a profit-share model, but it left the hourly rate of developers at something that was less than the industry average. After a failed attempt at starting a studio with a profit share model and the experience of leaving a big studio with nothing, the guys thought there had to be a better way to remunerate their team members.

Instead of using a numerical share the guys pivoted their new studio to have a gamified points based system. The points are earned based on a successfully, completed and approved task within their project. As all the tasks are being completed, they are accumulating into a pool of finished points. The total profits of the game are then sliced up between the company (League Of Geeks) and all the contributors.

The more tasks you do, the more points you earn and the more your percentage is of the games profits. The most important part when coming up with this point system is to understand how many hours your project will take, how many points will be needed and what the projected profits are of the project.

When you know this you can mathematically work out if the hourly rate is fair for the work your contributors need to do. It is unfair if someone spends fifty hours doing work for you and gets $5. The system must be honest, and a contributor should be able to earn more money from points than being paid hourly by the company.

To manage all of this the guys use the Pivotal Tracker software that helps them to see the velocity of their project and at what date certain milestones of the game will be completed – they can even see real time distractions like this interview affect their output. How can you implement the world-class technology that League Of Geeks has come up within your startup?

Below are Trent and Blake’s top eight tips to creating a textbook crowdfunding campaign for your startup.

1. Talk with other highly successful crowdfunding campaigns

Before the Armello guys did their campaign, they spoke with the top Video Game success stories from Kickstarter to see what they did to be successful at raising lots of money. It’s a great idea to hit them with questions and find out from them what worked, what didn’t work and what they would do again. You could even take it one level above that and send them a copy of your draft crowdfunding campaign and ask them for feedback.

The guys spent months researching Kickstarter and they describe it as a bit of a dark art where you hear legends that something might work if you say it in a certain tone or if the moon hits a certain position then a different strategy could work. Even though you can talk with other successful campaign founders, and their campaign could do everything right, just remember that their success is for that point in time – another point in time might yield completely different results even if you mirror the campaign with your own story. Some of the techniques though are timeless and can work at any point in time.

One lesson that the guys learnt from speaking with these other video game developers was that they had backers that had paid for the $10k tier, but in the end they just couldn’t afford it. If you can’t make your goal without having big tiers, then you’re in trouble anyway. Not all, your pledges will come through, and you have to expect a 15% drop off when you come to collect your pledges. The most common pledges that fall off are the larger ones. You can also get some users doing crazy pledge amounts just to troll your project.

Armello Gameplay

Other backers from successful campaigns received a reward to come and spend a day at the game developers studio and the whole experience was an awkward interaction where it didn’t feel like there was a fair exchange of value. In these situations, you can feel like your time is not worth $10k and that that person could have just called up, and you would have let them come down and check out the studio for free. The Armello guys learnt from this advice, and from a responsibility point of view, they decided not to have monster high pledge tiers.

Kickstarter has 200-300 categories, and there is no precedence for this type of economic model ever before crowdfunding arose. Every single one of those categories has different purchaser and backer behaviours, so it’s worth studying your campaign’s niche thoroughly.

2. Communicate your why correctly

Kickstarter provides what’s known as good money, which means that there is no real legal obligation and no interest on the money to be paid. A lot of the campaign owners and backers work on a trust system and are trying to fill a need, so it’s very important to communicate your why correctly. You have to have a good product and not just one that anybody can get anywhere. It’s always good to come to Kickstarter when you really need the money because this will come through in your pledge, and it did for the Armello game.

Putting up a campaign where you say, “we have made the product already but we thought we would raise money anyway,” won’t work. In this scenario, there is no reason for someone to jump on board. A crowd of people will usually jump onboard your campaign because of compassion for your cause or early access to your product. Early access is appealing when you make the person feel like they are guiding the development and helping the developer finish the final product not just early access to something.

“People want to feel like they are the savior and that your boat is filling with water and they have jumped on with buckets to stop you sinking”

3. Create a rally and cry

When your startup is told by the industry that there isn’t a market for what you’re doing, your campaign can help create a call to arms that there is a need and for people to show their interest. Campaigns that demonstrate that the only way for something to be done is via crowdfunding, seem to work best. A great example is a game called Star Citizen where the gaming publishers of the world thought PC Games were dead and these guys proved through their campaign that they’re not.

Your campaign needs to be something that can only be achieved through crowdfunding and is the last hope to get the project off the ground.

Sell the dream of crowdfunding that people can come on board and make the game or project better. Give the users a sense that they will get one hundred times the value in return for their $15 pledge. When creating this rally make sure the page flows in the best possible way it can. For example, if you have beautiful music that accompanies your project you could tell the user to click play on the music as they are reading your story. Once your final story is up on the site consider cutting out sections that you don’t need and editing each section down to half of its length – only keep the critical content.

4. Implement a multi-stage campaign that is well timed

You shouldn’t bring your product to crowdfunding until you have a demo, and in the case of a game, something that can be played in some way, otherwise you are raising money too early. Part of LoG’s success with crowdfunding was to implement a three-stage campaign. They, first of all, ran their 30-day Kickstarter campaign that made them $305k. They then followed this up with a two and a half month Slacker Backer campaign that allowed them to keep collecting pledges on their website after the campaign was over.

The final step was to follow all of this up with an automated Backer Kit service one month after the Slacker Backer campaign. Backer Kit has been specifically designed to import all your data from other campaigns and merge it with your Kickstarter campaign.

On a platform like Kickstarter, you don’t have access to your backers contact details or their location. Backer Kit brings in a lot more details about your backers although the users must volunteer that information to you. This databasing of your backers allows you to generate CSV files and reports in case you want to email them or find out the geography of the backers (great for working out your tax bill).

Once Backer Kit has all your data in one place, it then sends out a customer service / survey email to your backers to manage the after campaign experience. The primary function it does though is to allow backers to increase their pledge tier from the one they originally selected, say $35, up a level to something like the $55 tier. Backers can also add add-ons, update their shipping address and details, which allows you to not have to deal with the customer service end of your campaign and tie everything in together.

5. Video – lights, camera, action

A high number of people that go to your page will watch the video, so this is crucial. Only a small number of projects that don’t have a video actually get funded. For the video to resonate it’s a good idea to have you or one of the other founders talking to the backers and to get your team on camera as well. A good closing line to your video could be “we want to bring this product to life, and we need you to make this happen!”

Your video should sell the dream, have a call to arms, be short and succinct, no longer than 3 minutes and ideally have some juicy animation if you can. Videos that are longer than 5 minutes typically have a rough drop off rate of 90% so make sure you follow the 3-5 minute format.

Watch Trent show you how a good video should be presented

6. Try some of these promotion techniques

The first four days of your campaign are the most important and you shouldn’t intend on sleeping at all, only promoting your campaign like crazy in every possible way you can. 40% of your funds will be raised during this time so if you only get 10% of your total pledge, then your campaign is usually over. What you raise in the first four days of your campaign is what you will do in the last four days. Thirty-five days is the best length for a campaign so try and set this as the length if you want to be successful.

A technique that can work well on Kickstarter is to cross-promote other campaigns in your updates. This cross-pollination is well received and will see some mutually beneficial promotion occur early on – campaigns speak to each other. Outside of the Kickstarter platform the next biggest attributer to funds for Armello was Twitter and then Facebook. The Armello guys saw that as soon as they put out a tweet or a post, they would see an injection of cash into their Kickstarter campaign – you have to be there stroking those oars on the rowboat.

Thirty Days of Despair

A crowdfunding campaign typically has a spike of funds in the beginning, a spike at the end and a trench in the middle where no matter what you do you can’t seem to raise a lot of funds.

To prove that crowdfunding is a bit of a dark art, Blake and Trent said that during one part of the Armello campaign the guys got IGN (one of the largest gaming sites in the world) to tweet a gameplay reveal to millions of people on their Youtube and Twitter accounts, and they didn’t see a single bump to pledges at all. Three days later a smaller site called Kotaku posted another gameplay video, and this then caught the tail end of their campaign that helped them raise $150k. You never know which marketing campaign is going to deliver.

The engagement with your campaign is really important as to whether your marketing will work, and people will pledge. The projects that typically get funded have a high amount of comments, so it’s important for you to stimulate the conversation on your crowdfunding page and get people talking. The more comments you have, the better your curation will be within Kickstarter’s platform.

During Armello’s 30-day Kickstarter campaign, the guys were on shifts managing their page 24/7 and replying to people’s questions. If a user reaches out and then you reply back straight away and then someone else sees you answering questions then they will ask a question. To create this natural viral loop, you must be 100% committed during the whole campaign to be there no matter what. The Armello page even had some of the users calling themselves the champion of the game so Trent and Blake would answer their questions and address them as the champion to make them feel inclusive of a community.

Most of your pledges will be International – UK and USA are typically the highest. This means that you shouldn’t concentrate your marketing in one country and try and target a few of the places where you see pledges coming from. Three days after the start of the Armello Kickstarter campaign, Trent jumped on a plane to the USA to start promoting what they were doing at a convention – don’t be afraid to do the media circuit in person in conjunction with your online marketing.

The Bitly secret weapon

When you’re posting links to your crowdfunding campaign on social media you should always try and use something like a custom Bitly links so that you don’t have some giant URL that won’t fit in a tweet. These links are typically more memorable, easier for people to share and will give you greater analytics as to who’s clicking the link.

7. Structure your rewards strategy

You must have clear, well-defined goals that are easy to read and understand aren’t convoluted, and that offer people real value every time they step up. To achieve this, you will need to have a focused strategy with your rewards. For the Armello game, the main goal was to funnel everyone into the $55 tier and then if they got a chance, they would encourage backers to go to a higher rewards tier from there.

One of the secrets is not to necessarily have lots of backers, but to have a high amount of money raised at the end. Due to the strategy with Armello’s rewards, the game raised more than $300k with a very low number of backers, because the average pledge was $49, which is quite high for a crowdfunding campaign.

The Armello guys were able to get people up to the next tier because as soon as a backer purchased the game at the base tier, immediately they created something new that came out which communicated that it was better value to go up another tier. Then a backer moves up again because something new has been added into another one of the higher tiers, etc.

Against each tier, you should profile a buyer type. For example, on one tier the Armello guys based the tier around someone who would love the audio, on another it was a buyer that might like the story books, or someone that wants to be the collector, or someone that wants to be the hardcore gamer to get in early. Different buyer types could then correspond to different pledge amounts, which you need to estimate to work out how much someone might pay. People that like the physicality of collector items might be willing to pay more than someone that just likes the audio of the game.

When offering physical rewards like figurines, books or t-shirts it can be very easy to get a quote from a manufacturer, set the pledge amount and then find that when you come to fulfil that order the price to manufacture and ship can be a lot more expensive. The way to overcome this is to build in a large buffer in case the cost of your rewards are more than expected.

8. Community is everything with crowdfunding

Kickstarter allows you to build a community, and the core community are coming onboard for the ride. The platform allows you to make your biggest fans even bigger fans, and you’re making them champions to go out and promote your product.

You’re also making your product better because this community is then getting early access to try it out and help shape the direction of the product build better. The community helps to make you more accountable because when you hear the bad feedback you instantly want to fix the issues they are facing.

The majority of your funding from Kickstarter will come from people browsing Kickstarter. These people that browse Kickstarter are almost like nomadic tribes that go from project to project. When a backer puts in $15, they get to go on a roller coaster ride, and it can be quite addictive because of this.

Tim is best known as a long-time contributor on Addicted2Success. Tim's content has been shared hundreds of thousands of times and he has written multiple viral posts all around success, personal development, motivation, and entrepreneurship. During the day Tim works with the most iconic tech companies in the world, as an adviser, to assist them in expanding into Australia. By night, Tim coaches his students on the principles of personal development and the fundamentals of entrepreneurship. You can connect with Tim through his website www.timdenning.net or through his Facebook.

2 Comments

Great overview Tim and very useful information for anyone looking to start crowdfunding. Structuring rewards in the right way, is also quite important. I think people need to be enticed, sometimes there are creative ways to do this within a campaign. You campaign will rely on it heavily. Thank you, wonderful read.

7 Ways to Succeed at Running a Remote Start Up

Working environments have changed. The 9-5 day born out of the early fifties is no longer so rigid or necessary. Technology has paved the way for the remote worker – those who do their job from a location other than an official company base.

I run noCRM.io, a company of 11 people split across three continents, five countries and eight cities. It started with a regular, office-based structure before moving to a remote company. There are many nuances involved in creating a remote startup but, if done correctly, the positives far outweigh the negatives.

Here are some of the fundamentals of what we have learned during the transition from an office-based location to remote working:

1. Get Pro-Tech-ted

The primary enabler for a remote company is technology. Video Conferencing, collaborative cloud-based SaaS (software as a service), and other web-based tools have removed the importance of an official on-site premises. You can now conduct hours of video conferences around the world for free.

But which tech should you look to implement? The type of business must to be taken into account. Skype and Google Hangouts are the most used video-calling methods, while Slack is the go-to platform for messaging. When it comes to project management, Trello and Asana, two web-based tools, top the list for many.

Even social platforms like Facebook and Whatsapp can act as communication tools and are popular with some companies. The main aspect is to find solutions that work across the team, so everyone is happy to use them.

2. It’s Good to Talk

A crucial aspect of a successful remote startup is communication. There should be a centralized system in place where staff talk to each other. For some that consists of using emails, but the back and forth, along with multiple recipients, can make following trails confusing.

Some companies – especially tech-based ones – create their own internal communications systems for staff to communicate. For others, this is where free message software like Slack shows its worth.

Being remote can lend itself to going long hours without any interaction with peers. At the start of each day, we make sure each member of the company lists three objectives they’re working on for the day. They don’t have to be significant tasks, but it’s a way for everyone to feel included and keep up to date with assignments people are working on.

“Good communication is just as stimulating as black coffee, and just as hard to sleep after.” – Anne Morrow Lindbergh

3. A Leap of Faith

Finding the right people to work remotely affords a greater opportunity to cherry pick the best talent from all over the world. The interviewing process should take place with an element of caution, however.

Building an understanding with job prospects is harder through video and phone calls. Applicants might have a great resume, but that is only one part of the process. Remote workers need to be competent self-starters.

Be even more thorough than usual when interviewing. Make sure every detail is covered, and no stones are left unturned. Explore the idea of having several video calls with the same candidate before making a final decision.

It’s impossible to be 100 percent sure about a hire even when interviews take place face to face. Nonetheless, remote interviews require a more rigorous process. If something doesn’t feel right, go with your instinct.

Putting more effort into the hiring process has better long-term effects. When you find remote staff that fit the bill, they will take up less of your time. Trust is vital. Once you have it, you can depend on them to use their own initiative.

4. Time Zone Tribulations

While having access to the best staff members from around the world is a bonus, time differences can be problematic. How much of an issue they cause comes down to the type of work your company does and where you are based.

For example, if you are in the US, hiring someone from Australia – where there can be a 16-hour time difference – might not be a good idea. Unless it’s a specific role where regular communication isn’t necessary.

Navigating such a substantial difference in time zones certainly isn’t impossible. But you should weigh up the quality of the candidate in comparison to how much live interaction there will be with them.

5. Let’s Get Physical

While there are many benefits of working remotely, it’s still good practice to get the whole team together at least once a year. An annual meet up (Workation) to talk about strategy and moving forward can re-energize the whole team.

Everybody has the chance to meet in person at least once, which is good for relationship building. Most companies conduct some form of team bonding, and this is a good way to get people together even with remote working as your core structure.

Of course, there are factors to take into consideration, like budgets and logistics. However, bringing the team together at least once a year can help add a new dynamic to the company.

6. Have the Options

Ok, so this isn’t imperative to running a remote startup, but sometimes it’s nice to divide your time between remote structures and an office environment. That doesn’t mean you have to take the plunge and hire a full-time office.

Startup platforms like TechHub have popped up across the globe to offer entrepreneurs a chance to work out of an office at reduced costs. There are usually several options available, including flexi deals that allow you to work out of their bases for a set amount of hours.

The working environments are shared with other like-minded CEOs and business owners. The chances for networking are high, and the atmosphere is a positive one to dip into if remote working is getting a little bit, well, remote.

“Effective networking isn’t a result of luck – it requires hard work and persistence.” – Lewis Howes

7. Setting Yourself Up for Success

Starting a business presents its fair share of obstacles — and creating a remote startup is no different. Working away from an office still isn’t considered ‘the norm’. But as technology continues to improve, the number of people employed from a location other than an office is likely to rise.

Having a process in place is vital to running a remote business. Work out the structures, set strategies for yourself and your staff, and have a viable way of communicating. Do those things, and it shouldn’t be too long before your remote setup is running smoothly.

Have you ever wanted to work remotely from around the world? If so, what would you do and from where would you work?

Looking for Startup Success? The Best Advice From 5 Successful Startup Founders

Being a startup founder is hard, don’t make it any harder on yourself. You can learn from those who already have a successful startup and follow in their footsteps. Why fail when you can learn from someone else who has already failed? There are numerous startups that fail each year and I don’t want to see yours become another statistic.

The founders mentioned in this article are tried and tested. They have built their own successful startups each in unique ways. There’s never going to be one set way in which you can start your company.

Each founder has a different piece of advice to give you on how they achieved success. If you follow even one of the tips mentioned below, you’re giving your startup a greater chance to succeed.

Here is the best piece of advice from 5 different startup founders:

1. Effort is the ultimate equalizer

Dominic Pratt is the founder of eMINDSCLUB, a startup that’s hoping to pair you with the next Mark Zuckerberg by connecting you with entrepreneurs all around the world. Dominic learned that as a startup founder and in life – effort is the ultimate equalizer. He went on to say that society is idea rich and effort poor. Too many of us want the success but aren’t putting in the required grind to get it. It can be challenging he admits, but at the end of the day what is the alternative?

It can be lonely as an entrepreneur because so few of us get it and there has never really been a support group in place for entrepreneurs. Our friends and family want us to conform to their realities, but reality is a matter of perspective. He reminds us that it doesn’t make you a bad person for wanting more for yourself.

As an entrepreneur, you will feel resentment from your friends and family. Don’t allow this to get to you. At the end of the day, you only have yourself, do what makes you happy and what will allow you to succeed. Never take advice someone you wouldn’t be willing to trade places with.

“It is never too late to be what you might have been.” – George Eliot

2. Become comfortable with the unkown

Aaron O’Hearn is co-founder of the Startup Institute, a startup that offers courses, and programs that help give people skills, the mindset, and the opportunity to network and build a career they love.

The best piece of advice Aaron could give is to become comfortable with unknown. As an entrepreneur, study all you want but you need to put yourself out there. You can learn from the past but you also need to learn from applying what you’ve learned. The worst thing you can do is attain knowledge and let it go to waste.

You can let the unknown hold you back entirely. Don’t let this be you. Almost everyone who has become successful had to start from somewhere. They were just like us but the difference between them and you is that they took action despite being uncomfortable.

The problem is if you become too comfortable, you’ll think you have it made and lose your edge. Learn to become comfortable with unknown and always be willing to push yourself past your fears.

3. Place a financial wager on yourself

Nathan Chan is the founder of Foundr, a startup that has a highly regarded magazine and app that teaches entrepreneurs how to grow and build their business.

The best of advice Nathan could give a startup founder would be to place a financial wager on yourself. What he means by this is when he first started his company, it required a software that he put on his card for $2,000. This was neither money he had or money he could spend. It put his back against the wall. He had no other option than to succeed.

Depending on the entrepreneur you are, go all in. There are different periods when you can do just that. If you’re twenty-three, then by all means go all in but if you’re forty-five with a family, I’d recommend putting money in your business that forces you to become uncomfortable without putting your entire retirement fund in.

As an entrepreneur, you should thrive when your back is against the wall. Stress can be good when it forces you to put in work for your business. What can you do today that will put your back against a wall and force you to put work into your business?

4. Remember, you’re the one calling the shots

Brent Grima is the founder of EverTrue, a startup that works with schools and colleges to help automate their fundraising efforts. The advice Brent gave was to remember that it’s your company and at the end of the day, you’re the one calling the shots. You can speak to mentors and trusted advisers, but if it feels wrong in your gut, then don’t do it. No one is forcing you to make a decision you don’t want to make.

Sometimes when you’re trying to start a company, you take advice from others but often that advice can become conflicting. People will tell you different price points for your service or different ways to market your service. There’s not enough time to try every single price point or marketing service, pick the price or strategy you believe will give your business the greatest chance to succeed. This is your company, make the decision that best suits you.

“The only way to do great work is to love what you do.” – Steve Jobs

5. Hire remote employees

Sam Bruce is the co-founder at Much Better Adventures, a startup that helps you book adventurous vacations. When Sam was building his company, he realized the importance of hiring remote employees. You no longer need an office space to connect with your employees. If your employee is full-time, you can do a Skype call with them once per week to make sure they’re doing their work.

When you hire remote employees, you may save money rather than if you had an employee coming into an office. With the money you have save by hiring remote, you can reinvest back into your company. Embrace the nature that you can hire anyone from around the world to work on your company.

Being a startup founder isn’t easy. Don’t make it harder on yourself by not following the above advice.

Share with us below, what advice you would give to someone looking to get into the startup world!

3 Reasons Why It’s a Good Thing Your First Startup Failed

Statistics on business failure are a matter of heated debate. Back in 2014, a study in The Washington Post rubbished the oft-repeated claim that “nine out of ten businesses fail,” saying that it had “no statistical basis.” Even so, a more accurate figure from The Small Business Administration still points to only around half of businesses lasting beyond five years.

As such, there’s still a 50/50 chance that your first startup will fail. If this has happened to you, it’s unlikely to have been a pleasant experience. But does that mean that every bit of the time, money and effort was wasted? Absolutely not. In fact, the value of failing has been discussed on this site before.

As Henry Ford said, “The only real mistake is the one from which we learn nothing.” One thing you can be sure of is that in the wake of a failed start-up, you’ll have a heap of lessons to learn from. Every one of them represents an opportunity to do things better or differently next time and increase the chance of your next business being the one that truly goes the distance.

Here are three big reasons why the failure of your first start-up could prove to have been a blessing:

1. You know which tasks not to expend time and money on

It’s pretty much impossible to get a business off the ground without making some mistakes, especially when it comes to putting time and effort into ideas and activities that don’t move the company forward.

However, it’s easy to forget and write off, for example, a futile Google Ads campaign or a pointless dalliance with Instagram if the business goes on to be a success. However, if the company fails, then these drains on time and money suddenly come into far sharper focus.

This being the case, the chances are you’ll have quite a sizeable “never again” list, even if it’s only stored in your memory. Everything on that list is an opportunity not to make the same mistake again whether it’s a web developer you’ll not be using again or acquired knowledge on which advertising strategies do and don’t work. You have a body of knowledge that’s going to ensure your next venture is leaner, meaner and more focussed.

“You have to work on the business first before it works for you.” – Idowu Koyenikan

2. You know what did go right

Of course (hopefully) you got some stuff right too? This knowledge is equally valuable. One way of looking at it is that your next start-up business can operate like a carefully edited and curated version of the first one.

All the ideas, working practices and promotional avenues that delivered results the first time around are things you can potentially recreate (albeit obviously only where the business similarities are relevant!) What’s more, because you’ve done these things before, they should take you less time the second time around.

There may even be documents, contracts, databases and various other things you can repurpose for your next company. This can result in big savings in both time and money. Just because the business failed doesn’t mean there aren’t considerable resources you still have to show for your initial efforts.

The same applies to the contacts you made and the suppliers and companies you used. That network is still there, and once again it’s now a “curated” network – you know exactly who to work with again, and who to swerve.

3. You’ve learned a valuable lesson in resilience

Gever Tulley is an American writer, TED talk host, and founder of San Francisco’s Brightworks school. He says that “Persistence and resilience only come from having been given the chance to work through difficult problems.”

This is very relevant in start-up businesses. Entrepreneurs who find huge success with their first business actually miss out on a valuable and crucial part of the learning curve, and this can come back to haunt them when there’s an unexpected bump in the road further down the line.

Yes, watching a much-loved business fail can be upsetting and demotivating, but coming out the other side still willing to have another go is undoubtedly a bold and determined move to make. It’s almost inevitable that the process will change you, and will certainly change the way you do things.

But it’s no bad thing to be more sceptical as to the claims companies make when they sell you something, tougher when it comes to price negotiation, or more cynical about the benefits of jumping onto the latest online bandwagon.

The last quote which I shall use to tie this up is from an unknown source, and it says that “the only person you should try to be better than is who you were yesterday.” If you can stick to that rule and use the failure of a business venture to bounce back with humility and determination, it should set you up well for your next attempt.

All the work that went into that “failed” business still has a huge amount of value. So move forward, concentrate on one thing at a time, and you should stand a good chance of success the second time around.

What failed venture are you grateful for in your life? Let us know in the comments below!

3 Powerful Ways to Stay Motivated While Building Your Startup

I hear one particular story being repeated over and over again in the startup world. See if you’ve heard it before. A friend tells me how excited he is about a new business idea. He’s talked to several potential customers who seem really interested, and he’s even contracted folks in the industry to help him build a prototype.

Two months later, I meet with him again. He’s still very excited, working hard at all hours of the day, and he says that they’re actually about to release the prototype. Another 2 or 3 months go by and I check in to ask him how everything is going.

Glumly, he tells me, “Well, we released the prototype to a couple of early adopters, but we didn’t find they were using it on a daily basis.” Or, “We spent like $50 on Facebook ads to spread the word, but nobody signed up.” And on and on it goes.

Just like that, another wantrepreneur’s dreams are crushed. “Maybe this entrepreneurship thing just isn’t for me,” he says. Sound familiar? It happens to all of us. We have that initial burst of excitement and we get super motivated to pursue our business idea, but then when reality hits and things don’t go as planned, we lose that spark and our motivation hits rock bottom.

People don’t realize that building a startup is like a roller coaster – one day you’re on top of the world and the next you’re having the worst day ever. Motivation is like the fuel in your car, when you run out, your company stalls and comes to a complete stop.

People always ask me how I maintain my motivation throughout the ups and downs of startup life. Like any other positive habit, you have to train yourself and you need a few techniques in your back pocket to help you get out of that rut when you (inevitably) fall into it.

Here are a few things that have helped me stay motivated while building my business:

1. Listen to or Read Something Motivational Each Day

This is actually one of my main sources of motivation. Every day, I listen to an entrepreneurship podcast and learn something new.

When you hear an interview with a successful founder, and he says he wakes up every day at 4AM to spend 2 hours writing a chapter of his book before heading into work, it makes you think “Wow! I thought I was working hard!”

I’ll listen to an owner talk about how he lost everything and managed to bring himself back from ruins. That kind of story can motivate anybody to push through the rough times in their own life and business endeavors.

When I hear these types of inspirational interviews during my morning walk, I go home eager to start work for the day!

“Your reputation is more important than your paycheck, and your integrity is worth more than your career.” – Ryan Freitas

2. Have a Learning Mindset

No matter how excited you are about your startup idea, remember that it’s a learning experience. A year from now, you may end up developing something totally different based on feedback you get from customers. If your first prototype doesn’t get the traction or results you were hoping for, then learn why that is.

Did it not solve the customer’s pain point? Were you solving the wrong problem? Call up the users and ask them why are they’re not using or buying your product! Brice McBeth in his book ‘Salon Chairs Don’t Sell Themselves’, shares his experience with the launch of an e-commerce website that he was trying to promote.

He found that potential customers were just not signing up, even though his team built a visually stunning website. It wasn’t until after he called several customers that he learned they felt the website looked too fancy for them.

They weren’t signing up because they thought the product was too expensive even though they hadn’t even looked at the pricing page. They based their assumption purely on the landing page. He changed the website and the product took off. So don’t get discouraged if your first launch fails. Go out and ask for feedback and correct your mistakes!

3. Sign Up Real Customers

The biggest motivating factor for me so far has been signing up our startup’s first real customers. Not a friend and not someone I met at a networking event who was doing me a favor. A complete stranger who found us on the web and wanted to sign up because she was interested in the product.

When I talked to this customer on the phone, she had no idea we were a startup in the beta stage. She was an office manager of a landscape and lawn service company who was looking for a time tracking software. Having a “real” customer using our application and depending on us to process payroll was a huge responsibility, but it was also motivation for us because we didn’t want to let a customer down.

I’ve found the wantrepreneurs of the world are a little intimidated by the important step of accumulating real customers. When beta customers sign up, they expect to have some issues with the product or software, but when a real, expectant, interested customer signs up and hands over their hard-earned money, it’s a whole different ball game.

But don’t be intimidated! The key is providing excellent customer service. Then your customers will stay with you even if your product is basic and buggy, because they know you will fix it and take care of them down the road. Trust me, waking up every morning knowing people are depending on you is the biggest motivation of all!

“The value of an idea lies in the using of it.” – Thomas Edison

Maintaining motivation while you’re working on your startup, especially at the beginning, is like anything else important in your life – you have to work at it! Listen to or read something inspirational every day, maintain the mindset that everything is a learning experience, and take that plunge to find real customers.

Then, use your system to be accountable for your work and provide great service, and you’ll discover the motivation to move forward even in the toughest of times.

How do you stay motivated while building your startup or running your business? Comment below!

Trying to Build Charisma? Pay Attention to How You Speak

Have you ever listened to yourself talking and said how on earth do I sound that terrible? Most of us don`t realize they have voice issues until we accidentally listen to our voice or seek professional help. But the truth is, 38 percent of your charisma comes from the way you talk.(more…)

Marwan Jamal is a fitness and health blogger at healthline.com. He’s a great fan of the gym and a healthy diet. He follows the trends in fitness, gym, and healthy life and loves to share his knowledge through useful and informative articles.

2 Comments

Great overview Tim and very useful information for anyone looking to start crowdfunding. Structuring rewards in the right way, is also quite important. I think people need to be enticed, sometimes there are creative ways to do this within a campaign. You campaign will rely on it heavily. Thank you, wonderful read.

7 Ways to Succeed at Running a Remote Start Up

Working environments have changed. The 9-5 day born out of the early fifties is no longer so rigid or necessary. Technology has paved the way for the remote worker – those who do their job from a location other than an official company base.

I run noCRM.io, a company of 11 people split across three continents, five countries and eight cities. It started with a regular, office-based structure before moving to a remote company. There are many nuances involved in creating a remote startup but, if done correctly, the positives far outweigh the negatives.

Here are some of the fundamentals of what we have learned during the transition from an office-based location to remote working:

1. Get Pro-Tech-ted

The primary enabler for a remote company is technology. Video Conferencing, collaborative cloud-based SaaS (software as a service), and other web-based tools have removed the importance of an official on-site premises. You can now conduct hours of video conferences around the world for free.

But which tech should you look to implement? The type of business must to be taken into account. Skype and Google Hangouts are the most used video-calling methods, while Slack is the go-to platform for messaging. When it comes to project management, Trello and Asana, two web-based tools, top the list for many.

Even social platforms like Facebook and Whatsapp can act as communication tools and are popular with some companies. The main aspect is to find solutions that work across the team, so everyone is happy to use them.

2. It’s Good to Talk

A crucial aspect of a successful remote startup is communication. There should be a centralized system in place where staff talk to each other. For some that consists of using emails, but the back and forth, along with multiple recipients, can make following trails confusing.

Some companies – especially tech-based ones – create their own internal communications systems for staff to communicate. For others, this is where free message software like Slack shows its worth.

Being remote can lend itself to going long hours without any interaction with peers. At the start of each day, we make sure each member of the company lists three objectives they’re working on for the day. They don’t have to be significant tasks, but it’s a way for everyone to feel included and keep up to date with assignments people are working on.

“Good communication is just as stimulating as black coffee, and just as hard to sleep after.” – Anne Morrow Lindbergh

3. A Leap of Faith

Finding the right people to work remotely affords a greater opportunity to cherry pick the best talent from all over the world. The interviewing process should take place with an element of caution, however.

Building an understanding with job prospects is harder through video and phone calls. Applicants might have a great resume, but that is only one part of the process. Remote workers need to be competent self-starters.

Be even more thorough than usual when interviewing. Make sure every detail is covered, and no stones are left unturned. Explore the idea of having several video calls with the same candidate before making a final decision.

It’s impossible to be 100 percent sure about a hire even when interviews take place face to face. Nonetheless, remote interviews require a more rigorous process. If something doesn’t feel right, go with your instinct.

Putting more effort into the hiring process has better long-term effects. When you find remote staff that fit the bill, they will take up less of your time. Trust is vital. Once you have it, you can depend on them to use their own initiative.

4. Time Zone Tribulations

While having access to the best staff members from around the world is a bonus, time differences can be problematic. How much of an issue they cause comes down to the type of work your company does and where you are based.

For example, if you are in the US, hiring someone from Australia – where there can be a 16-hour time difference – might not be a good idea. Unless it’s a specific role where regular communication isn’t necessary.

Navigating such a substantial difference in time zones certainly isn’t impossible. But you should weigh up the quality of the candidate in comparison to how much live interaction there will be with them.

5. Let’s Get Physical

While there are many benefits of working remotely, it’s still good practice to get the whole team together at least once a year. An annual meet up (Workation) to talk about strategy and moving forward can re-energize the whole team.

Everybody has the chance to meet in person at least once, which is good for relationship building. Most companies conduct some form of team bonding, and this is a good way to get people together even with remote working as your core structure.

Of course, there are factors to take into consideration, like budgets and logistics. However, bringing the team together at least once a year can help add a new dynamic to the company.

6. Have the Options

Ok, so this isn’t imperative to running a remote startup, but sometimes it’s nice to divide your time between remote structures and an office environment. That doesn’t mean you have to take the plunge and hire a full-time office.

Startup platforms like TechHub have popped up across the globe to offer entrepreneurs a chance to work out of an office at reduced costs. There are usually several options available, including flexi deals that allow you to work out of their bases for a set amount of hours.

The working environments are shared with other like-minded CEOs and business owners. The chances for networking are high, and the atmosphere is a positive one to dip into if remote working is getting a little bit, well, remote.

“Effective networking isn’t a result of luck – it requires hard work and persistence.” – Lewis Howes

7. Setting Yourself Up for Success

Starting a business presents its fair share of obstacles — and creating a remote startup is no different. Working away from an office still isn’t considered ‘the norm’. But as technology continues to improve, the number of people employed from a location other than an office is likely to rise.

Having a process in place is vital to running a remote business. Work out the structures, set strategies for yourself and your staff, and have a viable way of communicating. Do those things, and it shouldn’t be too long before your remote setup is running smoothly.

Have you ever wanted to work remotely from around the world? If so, what would you do and from where would you work?

Looking for Startup Success? The Best Advice From 5 Successful Startup Founders

Being a startup founder is hard, don’t make it any harder on yourself. You can learn from those who already have a successful startup and follow in their footsteps. Why fail when you can learn from someone else who has already failed? There are numerous startups that fail each year and I don’t want to see yours become another statistic.

The founders mentioned in this article are tried and tested. They have built their own successful startups each in unique ways. There’s never going to be one set way in which you can start your company.

Each founder has a different piece of advice to give you on how they achieved success. If you follow even one of the tips mentioned below, you’re giving your startup a greater chance to succeed.

Here is the best piece of advice from 5 different startup founders:

1. Effort is the ultimate equalizer

Dominic Pratt is the founder of eMINDSCLUB, a startup that’s hoping to pair you with the next Mark Zuckerberg by connecting you with entrepreneurs all around the world. Dominic learned that as a startup founder and in life – effort is the ultimate equalizer. He went on to say that society is idea rich and effort poor. Too many of us want the success but aren’t putting in the required grind to get it. It can be challenging he admits, but at the end of the day what is the alternative?

It can be lonely as an entrepreneur because so few of us get it and there has never really been a support group in place for entrepreneurs. Our friends and family want us to conform to their realities, but reality is a matter of perspective. He reminds us that it doesn’t make you a bad person for wanting more for yourself.

As an entrepreneur, you will feel resentment from your friends and family. Don’t allow this to get to you. At the end of the day, you only have yourself, do what makes you happy and what will allow you to succeed. Never take advice someone you wouldn’t be willing to trade places with.

“It is never too late to be what you might have been.” – George Eliot

2. Become comfortable with the unkown

Aaron O’Hearn is co-founder of the Startup Institute, a startup that offers courses, and programs that help give people skills, the mindset, and the opportunity to network and build a career they love.

The best piece of advice Aaron could give is to become comfortable with unknown. As an entrepreneur, study all you want but you need to put yourself out there. You can learn from the past but you also need to learn from applying what you’ve learned. The worst thing you can do is attain knowledge and let it go to waste.

You can let the unknown hold you back entirely. Don’t let this be you. Almost everyone who has become successful had to start from somewhere. They were just like us but the difference between them and you is that they took action despite being uncomfortable.

The problem is if you become too comfortable, you’ll think you have it made and lose your edge. Learn to become comfortable with unknown and always be willing to push yourself past your fears.

3. Place a financial wager on yourself

Nathan Chan is the founder of Foundr, a startup that has a highly regarded magazine and app that teaches entrepreneurs how to grow and build their business.

The best of advice Nathan could give a startup founder would be to place a financial wager on yourself. What he means by this is when he first started his company, it required a software that he put on his card for $2,000. This was neither money he had or money he could spend. It put his back against the wall. He had no other option than to succeed.

Depending on the entrepreneur you are, go all in. There are different periods when you can do just that. If you’re twenty-three, then by all means go all in but if you’re forty-five with a family, I’d recommend putting money in your business that forces you to become uncomfortable without putting your entire retirement fund in.

As an entrepreneur, you should thrive when your back is against the wall. Stress can be good when it forces you to put in work for your business. What can you do today that will put your back against a wall and force you to put work into your business?

4. Remember, you’re the one calling the shots

Brent Grima is the founder of EverTrue, a startup that works with schools and colleges to help automate their fundraising efforts. The advice Brent gave was to remember that it’s your company and at the end of the day, you’re the one calling the shots. You can speak to mentors and trusted advisers, but if it feels wrong in your gut, then don’t do it. No one is forcing you to make a decision you don’t want to make.

Sometimes when you’re trying to start a company, you take advice from others but often that advice can become conflicting. People will tell you different price points for your service or different ways to market your service. There’s not enough time to try every single price point or marketing service, pick the price or strategy you believe will give your business the greatest chance to succeed. This is your company, make the decision that best suits you.

“The only way to do great work is to love what you do.” – Steve Jobs

5. Hire remote employees

Sam Bruce is the co-founder at Much Better Adventures, a startup that helps you book adventurous vacations. When Sam was building his company, he realized the importance of hiring remote employees. You no longer need an office space to connect with your employees. If your employee is full-time, you can do a Skype call with them once per week to make sure they’re doing their work.

When you hire remote employees, you may save money rather than if you had an employee coming into an office. With the money you have save by hiring remote, you can reinvest back into your company. Embrace the nature that you can hire anyone from around the world to work on your company.

Being a startup founder isn’t easy. Don’t make it harder on yourself by not following the above advice.

Share with us below, what advice you would give to someone looking to get into the startup world!

3 Reasons Why It’s a Good Thing Your First Startup Failed

Statistics on business failure are a matter of heated debate. Back in 2014, a study in The Washington Post rubbished the oft-repeated claim that “nine out of ten businesses fail,” saying that it had “no statistical basis.” Even so, a more accurate figure from The Small Business Administration still points to only around half of businesses lasting beyond five years.

As such, there’s still a 50/50 chance that your first startup will fail. If this has happened to you, it’s unlikely to have been a pleasant experience. But does that mean that every bit of the time, money and effort was wasted? Absolutely not. In fact, the value of failing has been discussed on this site before.

As Henry Ford said, “The only real mistake is the one from which we learn nothing.” One thing you can be sure of is that in the wake of a failed start-up, you’ll have a heap of lessons to learn from. Every one of them represents an opportunity to do things better or differently next time and increase the chance of your next business being the one that truly goes the distance.

Here are three big reasons why the failure of your first start-up could prove to have been a blessing:

1. You know which tasks not to expend time and money on

It’s pretty much impossible to get a business off the ground without making some mistakes, especially when it comes to putting time and effort into ideas and activities that don’t move the company forward.

However, it’s easy to forget and write off, for example, a futile Google Ads campaign or a pointless dalliance with Instagram if the business goes on to be a success. However, if the company fails, then these drains on time and money suddenly come into far sharper focus.

This being the case, the chances are you’ll have quite a sizeable “never again” list, even if it’s only stored in your memory. Everything on that list is an opportunity not to make the same mistake again whether it’s a web developer you’ll not be using again or acquired knowledge on which advertising strategies do and don’t work. You have a body of knowledge that’s going to ensure your next venture is leaner, meaner and more focussed.

“You have to work on the business first before it works for you.” – Idowu Koyenikan

2. You know what did go right

Of course (hopefully) you got some stuff right too? This knowledge is equally valuable. One way of looking at it is that your next start-up business can operate like a carefully edited and curated version of the first one.

All the ideas, working practices and promotional avenues that delivered results the first time around are things you can potentially recreate (albeit obviously only where the business similarities are relevant!) What’s more, because you’ve done these things before, they should take you less time the second time around.

There may even be documents, contracts, databases and various other things you can repurpose for your next company. This can result in big savings in both time and money. Just because the business failed doesn’t mean there aren’t considerable resources you still have to show for your initial efforts.

The same applies to the contacts you made and the suppliers and companies you used. That network is still there, and once again it’s now a “curated” network – you know exactly who to work with again, and who to swerve.

3. You’ve learned a valuable lesson in resilience

Gever Tulley is an American writer, TED talk host, and founder of San Francisco’s Brightworks school. He says that “Persistence and resilience only come from having been given the chance to work through difficult problems.”

This is very relevant in start-up businesses. Entrepreneurs who find huge success with their first business actually miss out on a valuable and crucial part of the learning curve, and this can come back to haunt them when there’s an unexpected bump in the road further down the line.

Yes, watching a much-loved business fail can be upsetting and demotivating, but coming out the other side still willing to have another go is undoubtedly a bold and determined move to make. It’s almost inevitable that the process will change you, and will certainly change the way you do things.

But it’s no bad thing to be more sceptical as to the claims companies make when they sell you something, tougher when it comes to price negotiation, or more cynical about the benefits of jumping onto the latest online bandwagon.

The last quote which I shall use to tie this up is from an unknown source, and it says that “the only person you should try to be better than is who you were yesterday.” If you can stick to that rule and use the failure of a business venture to bounce back with humility and determination, it should set you up well for your next attempt.

All the work that went into that “failed” business still has a huge amount of value. So move forward, concentrate on one thing at a time, and you should stand a good chance of success the second time around.

What failed venture are you grateful for in your life? Let us know in the comments below!

3 Powerful Ways to Stay Motivated While Building Your Startup

I hear one particular story being repeated over and over again in the startup world. See if you’ve heard it before. A friend tells me how excited he is about a new business idea. He’s talked to several potential customers who seem really interested, and he’s even contracted folks in the industry to help him build a prototype.

Two months later, I meet with him again. He’s still very excited, working hard at all hours of the day, and he says that they’re actually about to release the prototype. Another 2 or 3 months go by and I check in to ask him how everything is going.

Glumly, he tells me, “Well, we released the prototype to a couple of early adopters, but we didn’t find they were using it on a daily basis.” Or, “We spent like $50 on Facebook ads to spread the word, but nobody signed up.” And on and on it goes.

Just like that, another wantrepreneur’s dreams are crushed. “Maybe this entrepreneurship thing just isn’t for me,” he says. Sound familiar? It happens to all of us. We have that initial burst of excitement and we get super motivated to pursue our business idea, but then when reality hits and things don’t go as planned, we lose that spark and our motivation hits rock bottom.

People don’t realize that building a startup is like a roller coaster – one day you’re on top of the world and the next you’re having the worst day ever. Motivation is like the fuel in your car, when you run out, your company stalls and comes to a complete stop.

People always ask me how I maintain my motivation throughout the ups and downs of startup life. Like any other positive habit, you have to train yourself and you need a few techniques in your back pocket to help you get out of that rut when you (inevitably) fall into it.

Here are a few things that have helped me stay motivated while building my business:

1. Listen to or Read Something Motivational Each Day

This is actually one of my main sources of motivation. Every day, I listen to an entrepreneurship podcast and learn something new.

When you hear an interview with a successful founder, and he says he wakes up every day at 4AM to spend 2 hours writing a chapter of his book before heading into work, it makes you think “Wow! I thought I was working hard!”

I’ll listen to an owner talk about how he lost everything and managed to bring himself back from ruins. That kind of story can motivate anybody to push through the rough times in their own life and business endeavors.

When I hear these types of inspirational interviews during my morning walk, I go home eager to start work for the day!

“Your reputation is more important than your paycheck, and your integrity is worth more than your career.” – Ryan Freitas

2. Have a Learning Mindset

No matter how excited you are about your startup idea, remember that it’s a learning experience. A year from now, you may end up developing something totally different based on feedback you get from customers. If your first prototype doesn’t get the traction or results you were hoping for, then learn why that is.

Did it not solve the customer’s pain point? Were you solving the wrong problem? Call up the users and ask them why are they’re not using or buying your product! Brice McBeth in his book ‘Salon Chairs Don’t Sell Themselves’, shares his experience with the launch of an e-commerce website that he was trying to promote.

He found that potential customers were just not signing up, even though his team built a visually stunning website. It wasn’t until after he called several customers that he learned they felt the website looked too fancy for them.

They weren’t signing up because they thought the product was too expensive even though they hadn’t even looked at the pricing page. They based their assumption purely on the landing page. He changed the website and the product took off. So don’t get discouraged if your first launch fails. Go out and ask for feedback and correct your mistakes!

3. Sign Up Real Customers

The biggest motivating factor for me so far has been signing up our startup’s first real customers. Not a friend and not someone I met at a networking event who was doing me a favor. A complete stranger who found us on the web and wanted to sign up because she was interested in the product.

When I talked to this customer on the phone, she had no idea we were a startup in the beta stage. She was an office manager of a landscape and lawn service company who was looking for a time tracking software. Having a “real” customer using our application and depending on us to process payroll was a huge responsibility, but it was also motivation for us because we didn’t want to let a customer down.

I’ve found the wantrepreneurs of the world are a little intimidated by the important step of accumulating real customers. When beta customers sign up, they expect to have some issues with the product or software, but when a real, expectant, interested customer signs up and hands over their hard-earned money, it’s a whole different ball game.

But don’t be intimidated! The key is providing excellent customer service. Then your customers will stay with you even if your product is basic and buggy, because they know you will fix it and take care of them down the road. Trust me, waking up every morning knowing people are depending on you is the biggest motivation of all!

“The value of an idea lies in the using of it.” – Thomas Edison

Maintaining motivation while you’re working on your startup, especially at the beginning, is like anything else important in your life – you have to work at it! Listen to or read something inspirational every day, maintain the mindset that everything is a learning experience, and take that plunge to find real customers.

Then, use your system to be accountable for your work and provide great service, and you’ll discover the motivation to move forward even in the toughest of times.

How do you stay motivated while building your startup or running your business? Comment below!